Bank of India Abroad Education Loan Abroad

Bank of India (BOI) is a leading public sector bank in India that offers education loans for studying abroad. With competitive interest rates and extended repayment tenures, BOI empowers deserving Indian students to pursue better educational opportunities overseas. Founded in 1906 and headquartered in Mumbai, BOI provides financial assistance for degree programs, diplomas, and select courses. Students can benefit from tax advantages under section 80 E when availing education loans in the Bank of India. It is important for students to meet the eligibility requirements and carefully review loan conditions to make informed decisions. By leveraging BOI's study abroad education loan, students can finance their international education without financial burdens, opening doors to a world of possibilities.

Overview of Bank of India Education Loans Abroad 

The following table gives you an overview of Bank of India education loans to study abroad: 

Note: There will be an additional processing charge between INR 500 - 3,000 if the course falls outside the BOI list. The additional charge will vary depending on the quantum of loan amount.

Features of Bank of India Education Loans Abroad

There are four Bank of India education loan schemes among which the Star education loan scheme offers financial assistance to eligible students to study abroad at universities listed by the bank. Features of the scheme are listed below:

• The loan terms are student friendly in the sense that Bank of India offers loan amounts of high quantum at moderate rates of interest. 
• Collateral security is required for education loans of amounts more than INR 7.5 Lakhs to study abroad. 
• The collateral must be tangible, and agricultural land is accepted only in states where the law permits mortgaging of agricultural land for non-agricultural activities.

Eligibility requirements for Bank of India Education Loans Abroad 

Bank of India mandates eligibility requirements specific to the student regarding the academic choices and general eligibility requirements. Listed below are the major eligibility requirements for education loans from Bank of India: 

• The student must be an Indian citizen 
• Secure admission to a recognized institution abroad, like ranking under 3,000 in the list of Webometrics or under 1,000 in the list of QS World University Ranking
• Course of study must be listed by BOI
• If the selection for higher studies is not based on academic merit or entrance results education loans are granted based on the future employment potential and reputation of the institution

Courses Eligible for Bank of India Education Loans for Abroad:

Considering the future employability of students, BOI mandates the student must be enrolled to any of the following courses to be eligible for an education loan to study abroad: 

• Graduate degree - professional, technical, or any other graduate course
• Post graduate degree - MCA, MBA, MS, etc. 
• Post graduate diplomas
• PHD
• Courses conducted by CIMA- London, CPA in USA etc.
• Regular degree / diploma courses like aeronautical, pilot training, shipping etc., provided these are recognized by local competent regulatory bodies of Aviation or Shipping abroad and Director General of Civil Aviation or Shipping in India for the purpose of employment in India/abroad.
• Courses as initiated under various government education loan subsidy schemes

Expenses Covered Under Bank of India Education Loan 

Education loans from the Bank of India extend a standard coverage of the expenses you have while studying abroad. Areas of loan coverage are flexible and open ended if you have valid proofs for additional expenses. The major areas of spending for Bank of India education loans are: 

• Fees for tuition, admission, and hostel 
• Examination and library fees
• Books, equipment and instruments costs
• Travel expenses or passage money (one way fare)
• Price of computer or laptop.
• Funds with receipt or bill from the institution, like caution deposit, building fund, or refundable deposit 
• Life Insurance Premium for life cover of student or co- borrower for total tenure of loan
• Any other expenses related to education

Application Process for Bank of India Abroad Education Loans 

Students can apply online or offline for education loans from Bank of India depending on their convenience. The application can be in-personal or digital, and as promised by Bank of India, involves minimal documentation and lesser time. 

Offline application: You can apply offline by visiting the nearest BOI branch and following the guidelines the bank executive would provide. 

Online application: You can apply online for BOI education loans by following the steps mentioned below: 

• Visit the official website of Bank of India
• Select Star education loan - Studies abroad and click on ‘Apply now’
• Fill out the application form 
• BOI will reach out to you and instruct the further steps

The other convenient alternative is applying via Vidyalakshmi portal for BOI Star education loan for studying abroad. Read more about Vidyalakshmi portal. 

Bank of India Education Loan Documents Required 

Documents required for an education loan in Bank of India need to be proper to prove the education loan eligibility of the student and co-applicant. The requirement of documents for a student loan BOI is case specific and varies with students.

Generally, the following are the documents required from the student and co-applicant for Bank of India education loans:

Documents from student for student loan Bank of India:

• Proof of identity ( PAN & Aadhaar)
• Proof of address
• Academic records(X ,XII , Graduation if applicable)
• Proof of admission/ qualifying examination result ( if applicable)
• Schedule of study expenses
• 2 passport size photograph
• Vidyalakshmi portal reference number
• Vidyalakshmi portal application number

Documents from co-applicant for student loan Bank of India:

• Proof of identity ( PAN & Aadhaar)
• Proof of address
• Income proof (ITR/Form16/Salary slip etc.)
• 2 passport size photograph
• 1 year bank statement
• Collateral security details and documents, if any

Subsidy Schemes on Bank of India Education Loans 

The Bank of India offers education loans under the Star Vidya initiative, which includes coverage through the Credit Guarantee Fund Scheme for Education Loans (CGFSEL). This subsidy is applicable for loans up to ₹7.5 lakh, provided they meet the standards set by the Indian Banks' Association (IBA) Model Education Loan Scheme for studies in India and abroad. Applications for this subsidy can be submitted online via the Vidya Lakshmi Portal, developed by NSDL e-Governance Infrastructure Ltd.

Central Government Interest Subsidy Scheme for Education Loan 

The Central Government Interest Subsidy Scheme is designed to assist students from Economically Weaker Sections (EWS) in pursuing professional courses in India. The scheme provides a full interest subsidy on education loans taken from any scheduled bank during the moratorium period, which includes the course duration plus one year or six months after securing a job, whichever comes first. To qualify, the student's parental income must not exceed ₹4.5 lakh per annum, and the course must be from a recognized institution in India.

However, given that education loans from the Bank of India is a good pick to study abroad, it is crucial to be eligible for the loan to enjoy the benefits. One major drawback with Bank of India’s education loans is that the loan amount is limited to INR 7.5 Lakhs for students without any collateral. Also, there are no mentions of liquid collateral being accepted for education loans, a disappointing news for students without any tangible collateral to pledge on for an education loan.

You may go through the loan terms and conditions patiently to make an informed decision on education loans from Bank of India to study abroad. If you are not not eligible, no need to fret since there are more education loan options you can explore among the public banks, private banks, Non-Banking Financial Companies (NBFCs), and international lenders. As a first step, check your education loan eligibility and see the top education loan options for your profile.

Frequently asked questions